My Passion for Financial Guidance

At Global Advisers, my dedication to my work stems from the profound relationships I build with our clients. However, the pinnacle of my role as a financial advisor is the joy of informing clients that they have the option to retire earlier than they thought.

While the typical retirement ages in the United States stand at 63 for women and 65 for men, the COVID-19 pandemic has led many to consider the possibility of early retirement. For those pondering this significant life decision, it’s essential to assess if it’s a viable choice for you.

Setting Your Sights

Working with a financial advisor can provide a thorough analysis of your portfolio and offer insights using cash flow modeling tools to evaluate the feasibility of early retirement. For those without an advisor, our retirement income calculator is a valuable resource to gauge your financial readiness.

Enhancing Your Savings

The key is to closely examine your current expenditures versus your anticipated needs upon retirement. This examination often reveals opportunities for increased savings. The trade-offs, or “sacrifices,” should be viewed through the lens of long-term benefits versus short-term lifestyle adjustments.

I’ve witnessed clients allocate a significant portion of their substantial earnings towards savings, aiming to live modestly to achieve their retirement goals. Flexibility and openness to various retirement scenarios are crucial, as the most realistic goals are attainable and well within reach.

Early Retirement: Taking Control

The feasibility of retiring early boils down to a clear understanding of your financial status: current savings, projected growth, and the requirements to sustain you through retirement.

Budgeting: A Pre-requisite

A thorough budget is indispensable for anticipating future expenses. Our tools, such as the retirement expense spreadsheet and retirement income worksheet, are designed to help you map out your financial landscape for retirement, aiming to replace 85% to 100% of your pre-retirement income.

Addressing Debt

While retiring debt-free is ideal, focusing on eliminating high-interest and non-tax-advantageous debts is advisable before considering early retirement. Maintaining manageable debts, like a mortgage, requires careful planning to ensure adequate income for essential expenses.

Safeguarding Your Reserves

Having a cash reserve for unforeseen expenses is a strategy my wife and I are employing as we approach retirement, and I advise my clients similarly. Such preparation is crucial for mitigating income shocks and covering unexpected costs, ensuring financial stability.

Healthcare Planning

Healthcare costs pose a significant challenge for those looking to retire before 65. Understanding your future healthcare expenses and exploring all available options before Medicare eligibility is crucial for comprehensive retirement planning.

Beyond Finances: Emotional Well-being

Retirement is more than a financial milestone; it’s a major life transition that impacts emotional health. Envisioning how you’ll spend your newfound time is essential for a fulfilling retirement.

Exploring Work Alternatives

Considering part-time work, consulting, or reduced hours can provide a soft transition into retirement. Discussing these possibilities with your employer might open up flexible options for easing into this new chapter of life.

The concept of early retirement carries with it excitement, apprehension, and a host of considerations. Through careful planning and strategic decision-making, Global Advisers is here to guide you confidently into this promising phase of life.